Solid investing techniques always involve diversification. Sometimes diversification occurs when people add bonds, international stocks, or through the purchase of the total stock market index fund. However, there is another way to diversify your investing strategy that can also provide a source of passive income. It involves real estate syndications, and I recently was a beta-tester of a course on this topic called the Passive Real Estate Academy (previously called the Passive Income by Investing in Syndications). This course is now open for the public, which allows you to benefit as much as I did.
The Course is Open for Fall 2019 until November 11th, 2019. Click here to register.
In today’s review, we will discuss the basics behind the Passive Income By Investing In Snydications course; who I think this course will benefit most; and we will go through a week-by-week review of what you can stand to learn from the course as well.
Keep reading if you want to confidently invest in passive real estate opportunities in 4 weeks!
Passive Real Estate Academy: The Basics
This course was created by Dr. Peter Kim, a practicing anesthesiologist in California and the owner of the Passive Income MD blog. Peter has become an expert in real estate investment techniques including crowdfunding, real estate syndications, and even owning/managing properties.
It consists of a four week course, which is taught through a video and presentation format. However, it also includes a private Facebook group and live Q&A as discussed below.
The Syndications Course is aimed at helping people go from zero knowledge on the subject to confidently being able to vet deals and invest in syndications by the end. Here is what I had to say after I took the course myself,
When I started the Passive Real Estate Academy course, I knew next to nothing about real estate syndications. In less than six weeks, I learned what I needed to know in order to confidently diversify my investment portfolio through real estate syndications. This course helped me understand the reason behind real estate investing, the language involved in evaluating a deal, and how to vet the sponsors and opportunities that are out there. It is well worth the price of admission.
In addition to the knowledge that is packed into this course, I also got the chance to interact within a private Facebook group where we could ask questions, get advice, and go through the process as a group. It was moderated by investors who have an extensive amount of experience in the real estate syndication arena.
In addition to that, the course involves live Q&A’s on the Facebook group. This allows for people to ask questions and have them directly answered through video as opposed to through email or text in the group page.
Combining the knowledge provide by the course with the access to people who could clarify any questions I had was incredibly powerful.
The Design of the Course
The course is a four week course that is leaked out one week at a time. You will have access to the course content permanently. And, for those who are curious, there is a 100% money-back guarantee up until the end of the 2nd week.
With each week, the course introduces new material in a step wise fashion.
The First Week: Intro and Basics
The first week starts with a focus on why you should consider investing in syndications. It aims to help you answer the “why” for your financial goals and how investing in syndications might help you obtain those goals.
After some introductory material is covered, the course then provides you a road map to what investing in a syndication looks like. Definitions are provided, and seemingly complex topics are simplified.
The Second Week: The Sponsor
This one week was worth the price of admission for the course. Why? Because one bad deal can cost you a lot of money, and knowing everything that I discuss below can make you even more. Honestly, if this course was only one week long, and this was it… you’d get your money back easily when you start investing.
The second week is all about vetting sponsors for deals. And, if you don’t know what a sponsor is, that would have been covered in week one!
See, vetting the sponsors for the deals is probably the most important part of investing in syndications. The question, of course, is “how do I vet the a sponsor?” That is exactly what this course teaches you. It provides a step by step guide on how to vet sponsors with PDF material being provided for your use.
In addition to all of that, you are provided some real life audio and video examples of Peter vetting syndication sponsors. So, if the PDF worksheet for vetting sponsors isn’t straight-forward enough for you (which it is), you’ll also have living breathing examples of what the process looks like, some potential red flags that can be found, and how to feel confident in the sponsors you choose.
This is how someone else who took the course put it,
“I’ve invested in syndications in the past but I had no idea how to vet the deals. I literally just kept my fingers crossed and hoped for the best. Now after taking this course, the terms and nomenclature no longer intimidate me. I know how to recognize when an assumption seems off, [and] have the confidence to ask informed, educated questions when vetting a sponsor. I can go in on a deal knowing it’s right for me, and I’m comfortable with the terms having understood the proposal.” ~ Dr. Yume Nguyen
The Third Week: All About Money
This was probably the second most helpful week, in my opinion. This is where the tough subjects are discussed including the ins and outs of deals.
For example, if you don’t know what cash on cash, equity multiple, or internal rate of return are – or why they matter – this section will teach that to you. It lays the groundwork for vetting deals and understanding the tremendous amount of numbers that can be thrown your way.
Except, if you take this course, then you’ll understand the language. This prevents the experience from jarring you into either picking an obviously bad deal or getting scared out of taking a good one.
It also explains deal types, waterfall structures, and everything else you need to know about the “nuts and bolts” of syndication deals.
The Fourth Week:
Understanding the Market and the Property
This is where the course comes together and the big picture view is back in place. How will you determine that a specific deal is worth considering? What factors can help you realize if the market is strong or weak in a particular part of the country? What is the difference between a Class A and Class C property?
That’s what the fourth week aims to answer. And it continues to build on the information you’ve already learned in the previous weeks.
The Bonus Material
Everything above is worth well more than the price of admission. Honestly, it would have been enough to stop there. But then I started focusing on all of the other bonus material that was provided, and I was shocked at how helpful it was.
It included a glossary of terms that you learned from the videos, a list of trusted resources, and examples of how and where investing in syndications can go wrong.
If the information within the four weeks was the main course, this was the dessert. And it might have been my favorite part… but it only had that effect because of what I had already learned in the four previous weeks.
For those that enroll in the first 48 hours (until 23:59 of June 28th) you will receive access to a free group coaching call with Peter Kim, the creator of the course.
The cost of this course is $1297 if paid for in a single transaction, or $697 if broken up into two installments. Given the price tag of this course, you may wonder if it is worth the cost?
It’s 100% worth the cost.
The reason why is that a bad investment deal can cost you well more than the price of the course. In addition, knowing how to vet good deals will make you more money. You have the chance to recuperate the cost of the course after the first deal you make.
On top of all of that, you have two weeks after entering the course to disagree and get 100% of your money back. There’s really nothing to lose.
You also get lifetime access to the course. This is handy in case you need to review of freshen up on after you’ve taken it.
So, should you buy the course? Let’s discuss who would benefit from this course.
This course is for the following people:
- People who want to diversify their portfolio through syndications, but don’t know how to get started.
- Anyone who has considered investing in real estate, but who didn’t want to manage their own property.
- Those that want a passive source of income.
- People who have attempted their hand at syndications in the past and gotten burned because of not knowing how to vet a deal.
- Those of you who currently have – or anticipate having soon – the amount of money that it takes to invest in real estate syndications (usually $5,000 – $25,000 minimum for many deals).
Do you want to diversify your investments? Have you considered investing in real estate, but don’t want the hassle of property management? Do you want to benefit from the tax advantages of real estate?
Then this course is for you.
Remember, if you sign up, you have two weeks to get your money back. But, I bet you won’t end up asking for it.
Have you taken the course? Are you currently enrolled? What do you think about the course? Leave a comment below.